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At December 31 of Year 1 the investments in the portfolio of the trading securities of Kennedy Company included the following. Purchase Date Security
At December 31 of Year 1 the investments in the portfolio of the trading securities of Kennedy Company included the following. Purchase Date Security Oct. 1, Year 1 Atlanta Corp., 5% Dallas Inc. bonds, 4% jul. 1, Year 1 Entries and FS Presentation for Year 1 Date Dec. 31, Year 1 Original Purchase Price at Par a. Record the entry for the receipt of quarterly interest from the Atlanta Corp. bonds on December 31 of Year 1. Date Dec. 31, Year 1 $200.000 100,000 Entries and PS Presentation for Year 2 Date Dec. 31, Year 1 Account Name To record the receipt of interest. b. Record the entry for the receipt of semiannual interest from the Dallas Inc. bonds on December 31 of Year 1. Account Name To record the recelot of interest. Debit Account Name To adjust bonds to fair value at year-end. Debit c. Record the entry to adjust the bonds to fair value on December 31 of Year 1. The fair value of the Atlanta Corp. bonds and the Dallas Inc. bonds on December 31 of Year 1 were $220,000 and $90,000, respectively. Credit Debit Credit Credit d. Indicate the total amount to be included on the December 31 of Year 1 balance sheet of Kennedy Company as investments in trading securities.
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